The Main Reason Why Companies Want to Maintain a Minimum

question 82

Multiple Choice

The main reason why companies want to maintain a minimum cash balance is:

• A)the balance sheet always needs to reflect a cash balance.
• B)they are required by law.
• C)cash,in and of itself,can earn a very high rate of return.
• D)to make sure there is a pool of cash available to deal with an expected need.

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Definitions:

Tendons

Fibrous connective tissues that attach muscles to bones, facilitating movement by transferring forces.

Hyoid Bone

A U-shaped bone in the throat that supports the tongue and is involved in swallowing.

Floating Rib

The last two pairs of ribs in humans that are not attached to the sternum or to other ribs, providing flexibility and mobility.

Mandible

The lower jawbone in vertebrates; in insects and other arthropods, one of a pair of mouthparts used for biting and grinding food.